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Your Guide to Student Loan Refinancing

Refinancing means renegotiating your existing student loan: it can save you thousands of dollars in the long run.

The main reason why people refinance is to take advantage of benefits like only having one loan payment to management, lower interest rates, and to get out of debt sooner. But not all refinancing options are created equal.


Refinance Your Student Loans.

Refinancing your student loans can save you thousands or lower your monthly payment.

If you have federal loans and private loans, refinancing can result in losing special protections on the federal side such as loan deferment, or forgiveness programs.

What happens when you refinance is that you are basically replacing all of your existing student loan debt (both federal and private) with a new private student loan. This ‘new loan’ is used to pay off your ‘old loans’.

This is done to leave you with one manageable payment that will cost less to pay off thanks to consolidation and lower interest rates.

Interested in refinancing student loans?

Here are the top lenders of 2019-20!

2.01% – 8.88% APR

2.05% – 6.49% APR

Undergrad & Graduate

Undergrad & Graduate

What Do I Need To Refinance My Student Loan?

To be able to refinance, you will typically need a minimum of $5,000 in loan debt, as well as a FICO score above 700. A stable income is a critical element.

If your credit rating is not so great, or your income isn’t as stable as a lender might desire, you can still refinance with a co-signer who does have those things.


What Are The Biggest Reasons To Refinance My Student Loan?

Refinancing your student loan means:

  • Saving money.
  • Paying off debt quicker.
  • Having one loan to manage.


What Are The Biggest Reasons NOT To Refinance My Student Loan?

With refinancing paying off your federal and private loans, you could be giving up:

  • Federal loan deferment.
  • Federal loan forbearance.
  • Federal loan income-based repayment plan.
  • Federal student loan forgiveness programs.

It is important to speak with your refinance service provider to understand the exact implications of having your federal loans consolidated with private ones.


How Do I Know If I’m Eligible For Refinancing?

CLICK HERE to head over to the LendKey application to get your personalized rate.

You’ll fill out some information about your schooling, your finances, and your current residence.

No need to worry: a soft-credit inquiry won’t impact your credit score, and this two-minute application form will provide you with rate and payment estimates.


Is Student Loan Refinancing Right For Me?

Whether or not you should refinance your student loans will completely depend on your personal needs and situation. We know you hate that answer. Here are some questions to consider to help you make the right choice: Are you trying to save money on your monthly payment? Are you trying to decrease the amount of loan payments you have? Are you trying to decrease how much you are paying in interest?

If you answered YES to these three questions, it could benefit you to explore your refinancing options. Click here to explore them with LendKey.